Samsung Biologics Unveils $1.8 Billion Cash Offer for PolyPeptide
Synopsis
The South Korean biotech manufacturer has agreed to acquire Swiss contract drugmaker PolyPeptide in a deal that values the company at 1.46 billion Swiss francs.
Key Highlights
- Samsung Biologics offers to buy PolyPeptide for 1.46 billion Swiss francs (U.S.$1.81 billion) in cash.
- The offer values PolyPeptide at 44.31 Swiss francs per share, a premium of 6.1% versus the last closing price.
Samsung Biologics to make an all-cash tender offer for 1.46 billion Swiss francs (US$1.81 billion) for Swiss contract drugmaker PolyPeptide with the completion of the purchase expected between late August and the year-end.
By acquiring the deal, the company will enhance its capabilities in peptide-based therapeutics, especially around the rapidly growing GLP-1 treatment market for obesity and diabetes, said the company.
Offer Includes 6.1% Premium
Samsung Biologics is proposing 44.31 Swiss francs per share representing a premium of 6.1% over PolyPeptide’s last closing price of 41.75 Swiss francs on Friday. The board of PolyPeptide has unanimously advised shareholders to accept the offer.
Major Shareholder Backs Deal
PolyPeptide’s largest shareholder, Draupnir Holding, which holds approx. 55.65% of the shares in PolyPeptide, has undertaken to tender all its shares into the offer.
In April, the Swiss company announced Draupnir had been reviewing strategic options for its majority stake. The Cryosphere Foundation, which has connections to Swedish billionaire Frederik Paulsen, is responsible for maintaining Draupnir.
Plans to Delist PolyPeptide
Following the completion of this acquisition, Samsung Biologics intends to acquire any remaining minority shares through a squeeze-out and delist PolyPeptide from the SIX Swiss Exchange at which time it will become a wholly owned subsidiary.
Source: Reuters
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